CALC enters into finance lease receivables realisation transactions for four aircraft

Juliette O'Neill
By Juliette O'Neill September 1, 2016 09:04

CALC enters into finance lease receivables realisation transactions for four aircraft

China Aircraft Leasing Group (CALC) has successfully entered into finance lease receivables transactions (FLR Transaction) with a trust, which agreed to purchase the financial lease receivables of four aircraft at a total consideration of approximately US$153.5 million (equivalent to approximately HK$1,197 million) on 29 August 2016. The transactions were structured into senior and junior tranches, a first-of-its-kind arrangement in China, to fit different appetites and strategies of investors. The Group has completed three batches of capital securitisation transactions for a total of 11 aircraft since 1 January 2016.

“Aircraft lease receivables realisation has been an important part of our regular business and financing strategies that we committed to pursue,” said Winnie Liu, Deputy CEO and Chief Commercial Officer of CALC. “We are glad to see this repeating and continuous model is well received by the market. The rise in the number of realisation transactions underlines the ever-growing knowledge and confidence in the aircraft leasing industry, as well as the increasing demand of USD-denominated aircraft finance products with stable return. Through this transaction, CALC again answered the market demand timely, and at the same time, improving our strength in transferring risk, lowering financial leverage and enhancing cash inflow to further our globalisation strategy.”

“As the pioneer in the China aircraft financing industry, the continuous pursuit of realisation transactions provides another proof of our commitment in innovative financing. We will continue to capture the opportunity by actively pursuing aircraft lease securitisation when appropriate, and at the same time, exploring other flexible financing alternatives with the aim of facilitating fleet expansion plan at a lower cost, yet sustainable and accelerated pace and provide more advanced full value-chain aircraft solutions to its airline customers.”

Juliette O'Neill
By Juliette O'Neill September 1, 2016 09:04